BURLINGTON, ONTARIO--(Marketwired - March 2, 2016) -
Attention Business/Financial Editors:
Evertz Technologies Limited (TSX:ET), the leader in Software Defined Video Network ("SDVN") technology, today reported its results for the third quarter ended January 31, 2016.
Quarterly Highlights
- Revenue of $99.8 million, an increase of 10% year over year
- International revenue of $46.2 million, up 24% year over year
- Net earnings of $24.4 million for the quarter, up 15%
- Fully diluted earnings per share of $0.32 for the quarter, up 14% year over year
| |
| Selected Financial Information |
| Consolidated Statement of Earnings Data |
| (in thousands of dollars, except per share amounts) |
| |
|
|
|
|
| |
|
Q3 ' 16 |
|
Q3 ' 15 |
| Revenue |
$ |
99,754 |
$ |
90,726 |
| Gross Margin |
|
56,991 |
|
51,017 |
| Earnings from operations |
|
33,031 |
|
27,878 |
| Net earnings |
|
24,390 |
|
21,207 |
| Fully-diluted earnings per share |
$ |
0.32 |
$ |
0.28 |
| |
|
|
|
|
| |
| Selected Financial Information |
| Consolidated Balance Sheet Data |
| (in thousands of dollars) |
| |
|
Q3 ' 16 |
|
YE ' 15 |
| Cash and cash equivalents |
$ |
129,924 |
$ |
100,681 |
| Working capital |
|
319,879 |
|
294,895 |
| Total assets |
|
454,449 |
|
426,162 |
| Shareholders' equity |
|
374,574 |
|
353,471 |
| |
|
|
|
|
Revenue
For the quarter ended January 31, 2016, revenues were $99.8 million compared to revenues of $90.7 million for the quarter ended January 31, 2015. For the quarter, revenues in the United States/Canada region were $53.6 million compared to $53.6 million in the same quarter last year. The International region had revenues of $46.2 million compared to $37.2 million in the same quarter last year.
Gross Margin
For the quarter ended January 31, 2016 gross margin was $57.0 million compared to $51.0 million in the same quarter last year. Gross margin percentage was approximately 57.1% compared to 56.2% in the quarter ended January 31, 2015.
Earnings
For the quarter ended January 31, 2016 net earnings were $24.4 million, compared to $21.2 million in the corresponding period last year.
For the quarter ended January 31, 2016, earnings per share on a fully-diluted basis were $0.32 compared to $0.28 in the corresponding period last year.
Operating Expenses
For the quarter ended January 31, 2016 selling and administrative expenses were $15.1 million compared to $14.8 million for the quarter ended January 31, 2015.
For the quarter ended January 31, 2016 gross research and development expenses were $17.2 million, compared to $15.8 million for the quarter ended January 31, 2015.
Liquidity and Capital Resources
The Company's working capital as at January 31, 2016 was $319.9 million as compared to $294.9 million on April 30, 2015.
Cash and cash equivalents were $129.9 million as at January 31, 2016 as compared to $100.7 million on April 30, 2015.
Cash generated from operations was $49.6 million for the quarter ended January 31, 2016 as compared to cash used of $27.5 million for the quarter ended January 31, 2015. Before taking into account taxes and the changes in non-cash working capital and current taxes, the Company generated $29.8 million from operations for the quarter ended January 31, 2016 compared to $25.9 million for the same period last year.
For the quarter, the Company used $1.0 million in investing activities largely a result of purchases in capital assets.
For the quarter ended, the Company used cash in financing activities of $14.4 million which was principally a result of the payment of dividends of $13.4 million and the repurchase of Capital Stock costing $1.0 million.
Shipments and Backlog
At the end of February 2016, purchase order backlog was in excess of $60 million and shipments during the month of February 2016 were $28 million.
Dividend Declared
Evertz Board of Directors declared a regular quarterly dividend on March 2, 2016 of $0.18 per share.
The dividend is payable to shareholders of record on March 11, 2016 and will be paid on or about March 18, 2016.
| |
| Selected Consolidated Financial Information |
| (in thousands of dollars, except earnings per share and percentages) |
| |
| |
Three month period ended |
|
Nine month period ended |
|
| |
January 31, |
|
January 31, |
|
| |
2016 |
|
2015 |
|
2016 |
|
2015 |
|
| Revenue |
$ |
99,754 |
|
$ |
90,726 |
|
$ |
285,183 |
|
$ |
271,629 |
|
| Cost of goods sold |
|
42,763 |
|
|
39,709 |
|
|
122,829 |
|
|
118,226 |
|
| Gross margin |
|
56,991 |
|
|
51,017 |
|
|
162,354 |
|
|
153,403 |
|
| |
|
| Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selling and administrative |
|
15,121 |
|
|
14,805 |
|
|
44,750 |
|
|
43,307 |
|
| |
General |
|
1,502 |
|
|
1,635 |
|
|
4,740 |
|
|
4,768 |
|
| |
Research and development |
|
17,229 |
|
|
15,768 |
|
|
49,608 |
|
|
46,709 |
|
| |
Investment tax credits |
|
(2,519 |
) |
|
(2,325 |
) |
|
(7,414 |
) |
|
(7,178 |
) |
| |
Foreign exchange gain |
|
(7,373 |
) |
|
(6,744 |
) |
|
(14,452 |
) |
|
(8,124 |
) |
| |
|
23,960 |
|
|
23,139 |
|
|
77,232 |
|
|
79,482 |
|
| Earnings before undernoted |
|
33,031 |
|
|
27,878 |
|
|
85,122 |
|
|
73,921 |
|
| |
|
| Finance income |
|
117 |
|
|
209 |
|
|
455 |
|
|
603 |
|
| Finance costs |
|
(128 |
) |
|
(33 |
) |
|
(450 |
) |
|
(176 |
) |
| Other income and expenses |
|
211 |
|
|
138 |
|
|
361 |
|
|
165 |
|
| Earnings before income taxes |
|
33,231 |
|
|
28,192 |
|
|
85,488 |
|
|
74,513 |
|
| Provision for (recovery of) income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Current |
|
7,344 |
|
|
5,777 |
|
|
23,312 |
|
|
20,337 |
|
| |
Deferred |
|
1,497 |
|
|
1,208 |
|
|
(431 |
) |
|
(1,080 |
) |
| |
|
8,841 |
|
|
6,985 |
|
|
22,881 |
|
|
19,257 |
|
| |
|
| Net earnings for the period |
$ |
24,390 |
|
$ |
21,207 |
|
$ |
62,607 |
|
$ |
55,256 |
|
| |
|
| Net earnings attributable to non-controlling interest |
|
165 |
|
|
193 |
|
|
485 |
|
|
682 |
|
| Net earnings attributable to shareholders |
|
24,225 |
|
|
21,014 |
|
|
62,122 |
|
|
54,574 |
|
| Net earnings for the period |
$ |
24,390 |
|
$ |
21,207 |
|
$ |
62,607 |
|
$ |
55,256 |
|
| |
|
| Earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
$ |
0.33 |
|
$ |
0.28 |
|
$ |
0.83 |
|
$ |
0.73 |
|
| Diluted |
$ |
0.32 |
|
$ |
0.28 |
|
$ |
0.83 |
|
$ |
0.73 |
|
| |
|
|
|
|
| Consolidated Balance Sheet Data |
|
|
|
|
| |
|
As at
January 31,
2016 |
|
As at
April 30,
2015 |
| Cash and cash equivalents |
$ |
129,924 |
$ |
100,681 |
| Inventory |
$ |
158,308 |
$ |
154,259 |
| Working capital |
$ |
319,879 |
$ |
294,895 |
| Total assets |
$ |
454,449 |
$ |
426,162 |
| Shareholders' equity |
$ |
374,574 |
$ |
353,471 |
| Number of common shares outstanding: |
|
|
|
|
| |
Basic |
|
74,173,746 |
|
74,459,346 |
| |
Fully -diluted |
|
78,715,246 |
|
79,195,846 |
| Weighted average number of shares outstanding: |
|
|
|
|
| |
Basic |
|
74,418,199 |
|
74,399,096 |
| |
Fully -diluted |
|
74,871,783 |
|
75,033,398 |
| |
|
|
|
|
|
Forward-Looking Statements
The report contains forward-looking statements reflecting Evertz's objectives, estimates and expectations. Such forward looking statements use words such as "may", "will", "expect", "believe", "anticipate", "plan", "intend", "project", "continue" and other similar terminology of a forward-looking nature or negatives of those terms.
Although management of the Company believes that the expectations reflected in such forward-looking statements are reasonable, all forward-looking statements address matters that involve known and unknown risks, uncertainties and other factors. Accordingly, there are or will be a number of significant factors which could cause the Company's actual results, performance or achievements, or industry results to be materially different from any future results performance or achievements expressed or implied by such forward-looking statements.
Conference Call
The Company will hold a conference call with financial analysts to discuss the results on March 2, 2016 at 5:00 p.m. (EDT). Media and other interested parties are invited to join the conference call in listen-only mode. The conference call may be accessed by dialing 416-849-1967 or toll-free (North America) 1-866-253-4709.
For those unable to listen to the live call, a rebroadcast will also be available until April 2, 2016. The rebroadcast can be accessed at 416-915-1035 or toll-free 1-866-245-6755. The pass code for the rebroadcast is 937986.
About Evertz
Evertz Technologies Limited (TSX:ET) designs, manufactures and markets video and audio infrastructure solutions for the television, telecommunications and new-media industries. The Company's solutions are purchased by content creators, broadcasters, specialty channels and television service providers to support their increasingly complex multi-channel digital and high definition television ("HDTV") and next generation high bandwidth low latency IP network environments and by telecommunications and new-media companies. The Company's products allow its customers to generate additional revenue while reducing costs through the more efficient signal routing, distribution, monitoring and management of content as well as the automation of previously manual processes.